What do I do now?
04-15-2018, 06:53 PM
#26
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You would mean that you loose money on a straight purchase over a lease. This is not the same for all models but the ones that MB subsidizes. That is typically done by discounting the financing (MF) and keeping the residual higher than in reality. This helps pushing numbers. BMW does the same.
Unless residuals have changed for the S450, the residual can be as high as 57% (at 7500 miles a year - don't worry about miles though, they are actually a non-issue even if you drive more. Over 20k miles I would suggest a different path). So if you forget the cost of financing, the cars value would be $54720 when you give the car back. I can tell you now that there is no way a 3 year low milage S450 will get that money at trade-in or private sale.
In MN you only have to pay sales tax on the lease period of the car, not the full amount. Don't know about Iowa. Big savings not to pay sales tax on the $55k residual. Plus if used for a business, you may have tax advantages when leasing. Financing will be low on the S450 and can be negotiated (I am think around 2% or so). There will be registration and other fees, similar to a purchase and I suggest to roll all (including the sales tax) into the lease with no money down. No money down is important. No trade-in unless you cash out (They buy the car from you and then cut you a check instead of applying money towards a lease).
Think of a lease as a hedge against depreciation. With new MB EV models starting to come on line with the next 2-3 years you have no idea what your car will be worth...
Last edited by Wolfman; 04-15-2018 at 06:58 PM.
04-15-2018, 10:04 PM
#27
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I have checked out the Kansas City dealership and they are offering even a worse deal than my local dealer. It is guaranteed that I will get the value of the certificate. The GM does not yet know what it will be exactly, but it should be about $2K. I realize that this sounds like a bait and switch but in this case, I don't think it is. I was just too late to guarantee I get the car I want. Maybe I am too trusting with people and I trust this GM. In any case, I am under no obligation.
04-15-2018, 11:38 PM
#28
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The answer is: unlikely. The residual on MY 14/15 S550 was higher than on MY18 S560 and the residual is more than what the car is worth now.
You would mean that you loose money on a straight purchase over a lease. This is not the same for all models but the ones that MB subsidizes. That is typically done by discounting the financing (MF) and keeping the residual higher than in reality. This helps pushing numbers. BMW does the same.
Unless residuals have changed for the S450, the residual can be as high as 57% (at 7500 miles a year - don't worry about miles though, they are actually a non-issue even if you drive more. Over 20k miles I would suggest a different path). So if you forget the cost of financing, the cars value would be $54720 when you give the car back. I can tell you now that there is no way a 3 year low milage S450 will get that money at trade-in or private sale.
In MN you only have to pay sales tax on the lease period of the car, not the full amount. Don't know about Iowa. Big savings not to pay sales tax on the $55k residual. Plus if used for a business, you may have tax advantages when leasing. Financing will be low on the S450 and can be negotiated (I am think around 2% or so). There will be registration and other fees, similar to a purchase and I suggest to roll all (including the sales tax) into the lease with no money down. No money down is important. No trade-in unless you cash out (They buy the car from you and then cut you a check instead of applying money towards a lease).
Think of a lease as a hedge against depreciation. With new MB EV models starting to come on line with the next 2-3 years you have no idea what your car will be worth...
You would mean that you loose money on a straight purchase over a lease. This is not the same for all models but the ones that MB subsidizes. That is typically done by discounting the financing (MF) and keeping the residual higher than in reality. This helps pushing numbers. BMW does the same.
Unless residuals have changed for the S450, the residual can be as high as 57% (at 7500 miles a year - don't worry about miles though, they are actually a non-issue even if you drive more. Over 20k miles I would suggest a different path). So if you forget the cost of financing, the cars value would be $54720 when you give the car back. I can tell you now that there is no way a 3 year low milage S450 will get that money at trade-in or private sale.
In MN you only have to pay sales tax on the lease period of the car, not the full amount. Don't know about Iowa. Big savings not to pay sales tax on the $55k residual. Plus if used for a business, you may have tax advantages when leasing. Financing will be low on the S450 and can be negotiated (I am think around 2% or so). There will be registration and other fees, similar to a purchase and I suggest to roll all (including the sales tax) into the lease with no money down. No money down is important. No trade-in unless you cash out (They buy the car from you and then cut you a check instead of applying money towards a lease).
Think of a lease as a hedge against depreciation. With new MB EV models starting to come on line with the next 2-3 years you have no idea what your car will be worth...
04-15-2018, 11:57 PM
#29
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2020 S560 Sedan, 2019 SL450, 2019 E450 Luxury Trim Wagon, '24 BMW I7 on order...
It used to be that if you got a pretty good deal buying a new car and kept it pristine, it was easy to sell it in 3 to 5 years on the used car market. However, when leasing really started to become popular and then, when the CPO programs came along, it became quite difficult to sell used cars, as you were trying to compete with dealers offering all sorts of incentives. So, since I couldn’t beat them, I joined them and started leasing myself and have never looked back. Every 3 or so years, I give them the old car back and get a new one. Never any warranty problems and I’m always driving a new car. It works for me.
04-18-2018, 06:47 PM
#30
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Which year do you guys think the next generation S-Class will be available to order? Will it be in the summer of 2020 which will be a 2021 model? I'm just wondering since I will be leasing a 2019 S450.
04-18-2018, 10:19 PM
#31
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2018 S560 and 2019 E450 Wagon.
2020. https://www.caranddriver.com/news/20...g-changes-news What scares me is they are saying standard Hybridazation. That could mean a smaller truck, at least depth wise and I'd not be able to my sports gear in there. I guess I'll hold onto my 2015 and see what happens with the next generation in a year and half or so.
04-19-2018, 12:25 AM
#32
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C&D is saying in 2019 as a MY 2020, but I don’t think so. IMO, much more likely in 2020 as a MY 2021.
04-19-2018, 12:34 AM
#33
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The quality of your problems... not so bad. 
If what you want costs more since you're stuck needing a 2019 now, and you have to wait longer for it, just do it. You won't be happy unless you get what you want.
So what if you don't get the exact discount you want. You make your best deal, you shop it to death, and if you don't get 10% or 12% but can only get 7% or something like that, so what? It's chump change compared to the enjoyment you'll get out of getting the exact car you want... exactly. .
If what you want costs more since you're stuck needing a 2019 now, and you have to wait longer for it, just do it. You won't be happy unless you get what you want.
So what if you don't get the exact discount you want. You make your best deal, you shop it to death, and if you don't get 10% or 12% but can only get 7% or something like that, so what? It's chump change compared to the enjoyment you'll get out of getting the exact car you want... exactly. .
04-19-2018, 12:56 AM
#34
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The quality of your problems... not so bad.
If what you want costs more since you're stuck needing a 2019 now, and you have to wait longer for it, just do it. You won't be happy unless you get what you want.
So what if you don't get the exact discount you want. You make your best deal, you shop it to death, and if you don't get 10% or 12% but can only get 7% or something like that, so what? It's chump change compared to the enjoyment you'll get out of getting the exact car you want... exactly. .
If what you want costs more since you're stuck needing a 2019 now, and you have to wait longer for it, just do it. You won't be happy unless you get what you want.
So what if you don't get the exact discount you want. You make your best deal, you shop it to death, and if you don't get 10% or 12% but can only get 7% or something like that, so what? It's chump change compared to the enjoyment you'll get out of getting the exact car you want... exactly. .
04-19-2018, 06:12 AM
#36
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2015 S550 Palladium/Deep Sea Blue, 2016 Tesla Model S 70D, 2015 Volvo XC70
2020. https://www.caranddriver.com/news/20...g-changes-news What scares me is they are saying standard Hybridazation. That could mean a smaller truck, at least depth wise and I'd not be able to my sports gear in there. I guess I'll hold onto my 2015 and see what happens with the next generation in a year and half or so.
I too think that it will be MY 2021.
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04-19-2018, 10:48 AM
#37
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2018 S560 and 2019 E450 Wagon.
Standard hybridization very likely means mild hybrid, as seen in the S500 being sold now in Europe. Mild hybridization does not take trunk room so far as I know (the battery is only 1 kwh and I think I recall that it isn't in the trunk). There should also be full hybrids that do have smaller trunks, including at the high end, where I expect to see an AMG S73 plug-in hybrid.
I too think that it will be MY 2021.
I too think that it will be MY 2021.
04-19-2018, 12:31 PM
#38
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Both SYSWEI and Streamliner are saying that the next generation S Class will not be available until MY 2021 which means it will be a 2022 model. This means it will not be until spring/summer of 2021 (3 years from now) when you can order it.
04-19-2018, 02:11 PM
#39
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It's model year 2021. Think mid 2020...
04-19-2018, 03:19 PM
#40
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It's quite confusing. I'm crossing my fingers that I will still be in good health so that I will be able able to order the next generation S Class in the spring of 2021 (I am leasing the 2019 S450 that I just ordered the past couple days) and greatly enjoy it. It will likely be a 3 year lease. Thanks to Wolfman, Streamliner, and my CPA for knocking some sense into me to lease rather than purchase outright.
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